CBN Raises Benchmark Interest Rate to 26.25%

The Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) has announced a significant increase in the benchmark interest rate, raising it by 150 basis points from 24.75% to 26.25%. This decision was revealed by the Governor of the CBN, Yemi Cardoso, during a press briefing following the 295th MPC meeting.

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Central Bank of Nigeria Raises Benchmark Interest Rate to 26.25%

In addition to the interest rate adjustment, the CBN opted to maintain the Cash Reserve Ratio (CRR) of Deposit Money Banks (DMBs) at 45%. The bank also established an Asymmetric corridor around the Monetary Policy Rate (MPR) at +100 and –300 basis points.

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The move to raise the benchmark interest rate signals the CBN’s commitment to addressing inflationary pressures and stabilizing the economy amidst ongoing challenges. Governor Cardoso emphasized the importance of these measures in ensuring economic resilience and fostering sustainable growth.

The decision comes at a critical juncture for Nigeria’s economy, as policymakers seek to balance the need for monetary tightening with efforts to support recovery and mitigate external vulnerabilities. The MPC’s deliberations reflect a cautious approach aimed at achieving macroeconomic stability in the face of evolving domestic and global dynamics.

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